Both BP and Royal Dutch Shell posted better than expected results last week, boosted by their refining operations. However, this positive trading backdrop is unlikely to last. The oil refining industry has been weak for many years – due to the stuttering global economy and because of its significant overcapacity across the world.
"Industry refining margins increased sharply from year-ago levels across all of the regions in which we operate," Simon Henry, Shell's finance director, said last week. "It's been quite a while since we've been able to make such positive comments on the downstream macro."..............................................Full Article: Source